Sent:	Monday, 29 January 2001 3:06 PM
To:	super.sen@aph.gov.au
Subject:	SUBMISSION TO SENATE SELECT COMMITTEE ON SUPERANNUATION AND FINANCIAL SERVICES  

To Committee, 
 
From Terms of Reference, I understand the aim is to determine if the current method of indexation maintains real value. 
 
Defining Real Value
 
The first question to answer is "what is real value" and from whose perspective. I, as a Service pensioner, do not consider that real value in pensions is being maintained.  From my perspective, generally cost of living, local government costs, insurance etc have risen (acknowledging the GST impact), and to me "real value" has not been maintained given disposable income after covering normal living costs. 

Economic Indicators 
 
My view is, I consider, substantiated by comparison of pension increases with economic indicators over the past three years: 
 
            Year                        Pension Inc             Average Weekly Earnings                   CPI
 
            97/98                              0%                            4.3%                                        1.3%                   
            98/99                            -.02%                          3.2%                                         1.7%
            99/00                            1.1%                           4.4%                                          6.1%
 
As I only heard about the inquiry today, the figures are the best I could pull together but are, I believe, reasonable accurate. 
 
Clearly, pension adjustments do not align with economic indicators.
 
Just thought I'd put my five cents worth in on what is a fairly serious subject to retirees. 

  (M.A. PARK)